Expect fall in UK living standards and foreign investment, MPs hear

Brexit budget plans need to be ditched in favour of higher public investment to prevent recession, say top economists

Living standards are expected to fall as a result of the vote to quit the EU and foreign companies will be deterred from investing in Britain, according to economists appearing before a parliamentary committee.

They called on the chancellor to ditch plans for a tough budget of tax rises and spending cuts in favour of higher public investment to prevent the UK sinking into recession.